Unemployment and the Immigration Surplus

Udo Kreickemeier and Michael Michael

Discussion Papers from University of Nottingham, GEP

Abstract: Within a small open economy fair wage model with unemployment of unskilled workers, we show that exogenous unskilled immigration increases the welfare of natives if the elasticity of the inverse labour demands exceeds a positive finite threshold. This threshold depends positively on the displacement ratio of native workers by immigrants and negatively on the share of immigrants in the unskilled workforce.

Keywords: Immigration; Unemployment; Fair Wages (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:not:notgep:08/31

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